tv Real Money With Ali Velshi Al Jazeera July 11, 2014 5:00am-6:01am EDT
velshi. and this is "real money." ♪ >> this is isra"real money," and you are the most important part of the show. so tell us what is on your mind. we all get a sharp shocking reminder today that while america's economy is looking strong, the picture beyond our shores is anything but clear, and it may end up posing risks to the u.s. recovery. the reminder came in the form of a portuguese bank many of us have never heard of, but who's financial problems sent stocks in europe plunging. portuguese's stock the biggest plunge. followed by shane, italy, germany, france, and while some analysts say the problems are limited to one bank, the episode is bringing back very unpleasant
memories of the european debt crisis. the dow opened 180 points, but made up a lot of the ground finishing about 70 points down or less than half of 1%. but let's go beyond today's market reaction to the more important issue of europe's economic health. the health of some of america's biggest trading partners. the data shows the big picture. european demand is growing for american goods and services. europe exports rose to about 4% in may over april to $23.4 billion, that helped shrink the trade deficit by nearly 6%. but there may be reason to worry about whether europe is really on solid economic ground. 1.8% in germany, 1.7% in france. 1.2 in italy, and 0.7 in great britain. and all of thisment comes on top of persistent worries about very low inflation and investment in
the euro zone. the european recovery is not as strong as it should be. we also got incite into the financial strength of another major u.s. trading partner, china. that country's exports rose, and while that is the best pace in five months it was well below what was for cast. chinese imports also grew less than expectations, and that is adding to concerns that china may not meet it's a growth p targets. it's just another area to consider in a global market. let's tap into what all of this means for the economic recovery, both in the united states and abroad. joining us from boston is chief global economist at decision economics. alan has been covering the world's economies for more than four decades. alan what happened in europe today, is this an isolated incident or suggest a wrote broader problem.
>> it's not isolated in the sense that we're going to have incidents like that. but i don't think it fundamental. earnings reports we'll get in the next few weeks are fundamental, we'll see how they do. the world economy is in a different place than it was two or three years ago when something like this would set off nervousness and a big consolidation of the stock market. europe is not doing as well as it should, that's correct. but it is doing a lot better. they are not doing austerity anymore. the countries like portugal and spain are doing a little bit better. when markets hit highs, people get nervous, talk about bubbles, and almost everything -- and we had several bits of news -- can set off a selloff. >> is it your view that the american economy is essentially fundamentally sound right now, but investors are looking for
any sort of reason to have a selloff? that they think the market is a little bit too inflated? >> i think that's right. it's standard operating procedure. markets hit highs, people feel optimistic, and then something happens. traders sell, investors get scared. there's a lot of pizazz about it, and the world goes on, and after a time stock markets go back up. >> half of all americans have money in the stock market, as they see these signs of nervousness, and a lot of people were celebrating, and then over the past couple of days there was some nervousness. what could ordinary investoring be doing? sell. they might be a little cautious about putting new money in.
because the prices may get better ahead, but should continue to systematically invest in stocks, even if we have -- and some day we will -- i don't think we will this time -- have a full-fledged correction, i still think stocks are a place to put money into. we'll see how the earnings season goes. and down the road the federal reserve will start to raise interest rates, and that -- when that really comes into view, that could create a -- a regular correction. but the equity bull market in my view is going to go on and on and on for a long time. >> we're going to talk about the fed later in the show, but do you have any concerns or expectations, fears, about corporate earnings that are coming? >> we want to see a pickup in growth of earnings, better revenues, to justify the levels
of the stock market we're at now. and there are only about 30 companies that have reported. a couple from dow jones, so it's too early. the uncertainty of how earnings will go and whether we'll see the renewed growth in earnings, which we need to justify valuations, that uncertainty is a reason why some investors will take profits, sell, get some cash, and be ready to buy again if the when the uncertainty is clear. >> allan, thanks for being on the program. >> thank you. >> you're welcome. technology. >> you come to work here every morning. this is a tech area of brooklyn, how many people of color do you morning? >> i see maybe one out of every ten. >> we will show you how some investors are helping
entrepreneurs of color turn their dreams into realities. plus american and china admit an international spying drama. that story and more as "real money" continues. ♪ >> every saturday, al jazeera america brings you controversial... >> both parties are owned by the corporations. >> ..entertaining >> it's fun to play with ideas. >> ...thought provoking >> get your damn education. >> ...surprising >> oh, absolutely! >> ...exclusive one-on-one interviews with the most interesting people of our time. >> you're listening because you want to see what's going to happen. >> i want to know what works what do you know works? >> conversations you won't find anywhere else. >> tal
>> tech giants including google, facebook and apple recently released internal employment data showing most of their employees are white or asian. o combat this problem, a small but growing number of business incubators and accelerators are helping people of color strengthen their companies. >> reporter: sue sawny fits right in the downtown work scene. stylish in that hip, nerdy sort of way, but unlike most people in his professional life, he is african american. >> the typical ceo doesn't look like me. >> reporter: you come to work here every morning, this is a tech area of brooklyn, how many
people of color do you see on your way to work every morning? ten. >> dream invention is a growing number of incubators developing to change that. >> a third of the companies, that will have in our program are sponsored by comcast and are part of our program which we call dream and access. >> reporter: the general partner says the best axcceleratorsfor minore are the same access regardless of race. in exchange for handing over a 6% equity stake, each company gets $25,000, office space for three months, mentorship, and legal and accounting services. his company is called we did it. it helps non-profits better understand donor behavior, and
through an app offers a way to readers. >> usually within seconds the card is scanned and the donation takes place. >> reporter: the potential reach of we did it is vast. is there are more than 1.6 million non-profits in the usa, yet attracting investors hasn't been easy. >> we have had some difficulty raising funds for our business, even though we are -- we have been cash flow positive for over a year. >> reporter: according to a center, less than all firms seeking income in 2013 got it. but the situation is even more bleak for people of color. only 13% of non-white applicants got any angel funding, compared to an overall average of 22%. social connections are part of the problem. black and brown entrepreneurs may not have all of the professional contacts to get in front of key investors. this is where
incubators and accelerators say they add the most value. they get to pitch their business to several hundred accredited investors. >> it's time that black world. >> this professor says the market that present to people of color present a unique opportunity. >> it seems like the only thing that the global community wants to purchase from african-americans are aspects of our culture associated with the entertainment. >> reporter: at $1.3 trillion, the u.s. hispanic market is bigger than the economies of all but the top 15 countries. but the biggest drivers of investor eyes on communities of color and their entrepreneurs is that these groups are younger, and therefore what is hot in u.s. markets of color is likely
to have global appeal. university of georgia research shows african-americans spend disproportionately more in electronics than most americans. apple announced a $3 billion acquisition of beat. owned by dr. dre'. the head phones were marketed to young audiences. they are banking on companies like perkle, and on line community. and focussed on ceos like sue. >> towards the end of the year we're definitely going to be past perhaps our thousandth client. let's get more on technology investing and diversity with denmark west, a partner at k-1 investment management, and microsoft, viacom, and m-tv executive who now advises start-up companies. himself.
>> an angel investment round is either a seed round or presince tugsal round which is before the venture capitols or the professionals come to invest. it's high net worth individuals, qualified investors that make usually more than $200,000 a year, usually have some significant sum in assets, and what they are trying to do is invest in entrepreneurs, so they can determine product and market fit. so that means do you have a business or a product or service that not only the market wants, but they are willing to pay for and/or use. >> so it's a little bit more of a risk, but there can also be more of a reward for the angel investor. what is the key for a business investor. >> you have to have a clear value proposition. and people have to feel that you can have a large enough business to grow the investment.
people think about this early stage investment very similar to gambling, because so many start-ups fail. so if you are going to be at the riskiest part, you need to feel like there will be a big payoff to make it work. >> a lot of angel investors, they have a good sense about this person and their commitment to this particular project or venture to see it through. >> that's a good point. one of the things i think is important is there's an issue of comfort and competence. it's great if you know what you are doing. it's better if people feel good about you, and there's three major drivers that i have seen. one is do you have a similar education background? the second is do you have annum employment background or a work history or an entrepreneur history that says that you are actually doing something, or you have been in a place that i recognize and value in terms of their process and product.
and the third is do you actually know people, are you associated with people that i know, that i trust, that i think they are not only great people themselves but have great judge of character and they are saying this is something i should look into. >> is that why minorities and women may be at an disadvantage, because it's not so much the old boy's club? the connections are different? >> yes, and i can make an argument that minorities of both genders and women particularly have a little bit of a challenge when it comes to that familiarity and comfort issue. the fact that it is not a zero issue -- it's not a binary issue means there are people that can crack the nut in more ways. >> what are the trends you are seeing right now in terms of angel investments worldwide. >> there are a few trends. if you look at the evolution of
the market, there are three primary changes that i think have impacted angel investing in general and an ininvesting as a whole. the cost of starting up as dropped dramatically over the last 15 to 20 years. and that's a combination of three factors. one is open-source software has made getting products off of the ground much easier, two is the revolution in real estate has made it easier for people to get space and get started. three is cloud severa severals -- services have made the process you need from a infrastructure perspective much more incremental as opposed to having to buy racks of servers. the second thing that has happened is you have actually seen that the nature of the competitiveness of the industry has -- has changed in part. so as a rounds become more competitive, the angel investors themselves have now become the place where venture capitalists
have started to either act like angel investors or part for with them, to get into what used to be referred to as preinstitutional rounds, so they can have a seat at the table. and the final piece is around crowd funding. and that's the great democrat democratizer. and the entrepreneur side. >> on the enenside. you have your powerpoint, your business plan, what is the one most important thing to get that angel investor so say okay. i'm in. >> relatablety. you have to understand what makes this person pull the trigger to make a decision. at the end of the day, you are selling your business. >> denmark west is a start-up advisor and angel investor himself. thank you for being on the program. >> thank you for having me. >> coming up, why some american businesses are worried about the relationship between the
united states and china. ♪ >> people are not getting the care that they need >> a partisan standoff... >> i ride in opposition to obamacare >> millions un-insured... >> it hurts to see my family in this condition... >> our politics costing lives? >> there are people like me literally dying because because they don't have the cash >> fault lines. al jazeera america's hard hitting, >> they're blocking the door... >> groundbreaking, >> we have to get out of here... >> truth seeking, award winning, investigative documentary series the coverage gap only on al jazeera america
>> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now >> u.s. secretary of state john kerry, and jack lew went to china this morning to listen to their counterparts. the meetings are part of this year's u.s. china's strategic and economic dialogue, and in the past year, dialogue between the two countries has hit new lows. that's because china is locking horns with two u.s. allies in asia over maritime disputes. meanwhile the spat own cyber security breaches targeting american firms sours relations even more. this is what kerry had to say about that today in beijing.
>> the loss of international property through cyber has a chilling effect on innovation and investment. incidents of cyber theft have harmed our businesses and threatened our nation's competitiveness. and we had a frank exchange on cyber issues in our dialogue, and we both agree it is important to continue discussions in this area. >> add to that the usual economic disputes over trade imbalances and currency exchange rates and you can see why nobody expected a big break through in beijing this week, but the us-china relationship is an important one. china is the world's second largest economy and forecast to overtake the united states for the number one slot in the next ten years. well, the dialogue itself is important. but then in -- the outcourse is very important. you have these two very large
economies, the two biggest in the world. two very strong strategic powers, and the more they talk to one another, the more they understand one another, and the scope for misunderstanding is reduced. so hopefully the dialogue produces results. both sides want different things from these discussions, but just the mere fact of them talking, and hopefully they'll do it on a regular basis, means better problems. >> why has the relationship between these two global superpowers been deteriorating in recent years? >> certainly recently china has become much more assertive in asia, and in particular has -- has taken a somewhat aggressive attitude towards some of its neighbors, and that has created tensions within asia, but since the u.s. also is the guarantor of some of those
countries especially the philippines and japan, it has brought the u.s. into sort of a tense relationship with -- with china. so the hope is that these discussions will lower the -- the temperature, if you will in the region, lower the risks in the region, because while anned a -- advertant war is not likely, you could have perhaps two ships collide or something like that. >> i gather that intellectual property certains are great for your clients. explain about that. >> the u.s. takes intellectual property very seriously, whereas the treatment of ip, intellectual property, by
chinese, chinese government is much more shall we say casual. and that creates a big conflict. especially for sectors where this is important like high-tech. pharma another big one, biotech. very important, so a lot of u.s. companies are increasingly reluctant to do business in china because the respect for intellectual property in china is not as high as it is in the u.s. >> beyond the issue of intellectual property, what are some of the other big concerns that american companies have about dealing with china? >> well, the other big worry that u.s. companies have is the potential that china could have a hard landing, in other words have a recession. although recession in china means 3% growth, which a lot of countries would love to have. but 3% is a recession for china, and the worry is that this big
debt bubble that they have had recently which has gone to finance things like speculative real estate and adding a lot of excess capacity in industries like automotive and chemicals and steel, that kind of bubble can't last. sooner or later it is going to burst. in the next three to five years there is probably a one in three chance of some kind of bad scenario for china. that's what a lot of our customers are increasingly concerned about. >> what do the chinese want to hear from the united states and from your customers to improve the relationship from their perspective. >> i think the chinese are feeling they are a rising power, especially in asia, and they want the respect that comes with that. and i think at some level they feel they are not getting it. certainly not from the americans. so i think that's what they are looking for, an acknowledgment, a change in the rules if you
will. a change in the way things are viewed in asia, vis-a-vis china, so that in the long term i think is what china wants. >> what do you see in the relationship over the next few months or several years. >> i think it will take a lot of time for things to calm and come back on an even keel, so in the next few meetings, assuming they become a regular feature of the global economy. the next few meetings, probably more an understanding or enha z enhansz -- enhanced understanding between the americans and the chinese. >> the chief economist at ihs. thanks for being on the program. >> thank you. wealthy chinese investors are making their presence known here in america. they are leading an influx of
overseas buyers plunking down money in some of the hottest housing markets. randall pinkston has more. >> at 121 west 20th street -- >> wow. >> reporter: new york real estate broker works in one of the hottest markets in america. >> asking prize, $3.25 million. >> reporter: $3.25 million. >> correct. >> reporter: for a two bedroom, two bath apartment with 14-foot ceilings, plus a roof deck. he says most of his listings sell in the first month, and what is the average price range? >> you are looking at the one to $5 million price point. >> reporter: new york is in the midst of a real estate boom, with tight supply, high demand, and nose bleed prices fuelled by foreign buyers. chinese nationalists taking the lead.
foreign buyers purchased $92 billion in u.s. real estate. canadians bought the most. but chinese nationals spent the most, shelling out $22 billion for single family homes. foreign buyers are driving demand for the tallest residential building in america. 432 park avenue. the starting price for a one-bedroom unit is $7 million. going all the way up to $95 million for the top floor penth house. but even at those stat fearic prices, realtors say american real estate is a bargain. >> your average price per square foot in new york city is 13 bucks a square foot. which is a pretty good bargain, considering the fact that sydney, london are at 2100 a square foot and above. >> reporter: he says chinese nationalists are here to stay.
>> this isn't a quick investment skweem. they actually want to put some money down into a property and rent it out over time if they are not using the property themselves. >> reporter: realtors who cater to foreign buyers say most don't use mortgages. effectively shutting out american buyers. >> if you have an international buyer who says i can close in two weeks and pay with cash, that puts season who needs finance at a disadvantage. >> reporter: economists say the foreign buyers are also helping, >> the chinese is one of the major investors that puts money into mortgage-backed securities that keep interest rates low for the average american. >> reporter: most average americans aren't looking for places like these. but for those who are, no matter
how low the interest rate, it is not low enough to compete with cash. randall pinkston, al jazeera. the national association of realtors say the number of buyers from china and hong kong has jumped 72% in the past year. but the homes aren't always meant to be lived in all year long, some nationals buy properties for their children attending college to live in. the time is near when america's economy will need to stand on its own without the fed. plus a program to help middle class families pay for college and stay out of debt. ♪
>> it's a chilling and draconian sentence... it simply cannot stand. >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live. we knew it would happen sometime and now we know when. the federal reserve is signalling that its stimulus program will come to an end in october. some economists say the stimulus lost its power long ago, but not everyone is convinced the economy is ready to stand on its
own feet. here to explain is pedro from the wall street journal. what is giving the fed so much confidence that now is the time -- or at least in the next couple of months that it can accelerator. >> i think it's a product of confidence, and also a little bit, even though the fed might not admit this publicly, a product of a little bit of what you hinted to in your introduction, is there has been some fatigue in how far they can push these policies. they are seeing the labor market grow steadily even though growth has been volatile. but the labor market has continued to improve steadily, and inflation is gradually ticking higher towards the fed's objective so that gives them the confidence side. now the fear has been there has been a lot of controversy
surroubing the asset program the fed conducted, so all of these policies have been controversial. and that's the fear side. >> perhaps another thing that may be mroving them is that the jobs -- the labor market -- june was a very strong month for jobs. the unemployment rate to 6.1%, but not everyone thinks the labor market is very strong. why the conflict in that view? >> well, one of the things that is happening is the unemployment rate has dropped fairly quickly, and economists think that some of that drop is due to a decline in labor force participation, which really just means people who are discouraged about their prospects for finding a job, kind of -- they stopped looking, so they are no longer counted as unemployed. it's hard to distinguish how much of the labor force participation drop is due to discouraged workers and how much of it so demographic, baby
boomers retiring and those factors, so there's disagreement along those lines. but the fed finds some comfort at least as far as the monthly employment numbers, they have been above 200,000 for several months now. >> what is going to be their key factor in terms of their decision about the pace -- about when they start raising rates? this >> of course, yeah, that's the next big decision. in fact the market has already for several months discounted the whole -- you know, bond-purchase program as likely ending in the fourth quarter. the fed has put a bow on it by saying it is going to happen probably in october. but really the focus for a while has been on when will the fed begin to raise interest rates. rates have been at zero since december 2008. that's an unprecedented period of time.
now the fed is now expected to start raising rates sometime next summer. that has been the hint from policy makers. but there's a lot of internal disagreement, and it will depend on the pace of growth. if we continue to see improvement in the labor market, that could bring the fed to move a little earlier next year, but i don't expect any move in 2014. >> pedro thanks for joining us. >> thanks so much for having me. president obama has been ratcheting up the pressure on congress in recent days to approve his request for $3.7 billion to deal with a surge of children crossing into the united states illegally. yesterday the president told texas governor, rick perry, face-to-face that the white house had no philosophical differences with republicans in trying to stop the border crossings. and today jeh johnson testified
to congress about the administration plans. libby casey is following the story. libby where is this all headed? will the white house get a vote by next week? >> well, republicans haven't shut it down. we heard from speaker boehner and while he is doing a lot of finger pointing, we have not seen him say no. we did see a republican counterproposal coming from the arizona senators. no dollar amount attached to it, but it would do things like amend that 2008 victims trafficking law, and do some things the obama administration wants, like boost the number of judges, and has a foreign affairs component in the sense it would essentially penalize south american countries if they don't up their own security. but we heard the obama administration saying if we don't get this funding the
president has requested soon, ice will run out of money next month, customs and border david. >> democrats will go absolutely crazy if the president goes back on immigration reform. can this deal get done if the president is not willing to put this on the table. >> secretary johnson said he doesn't think rolling that back or amending it is necessary to border. and we heard them saying look the way you are talking about these children sounds like cattle, not kids. so the republicans are not the only ones pushing. democrats are also pushing the white house to not give too many concessions. the question is what is the president willing to barter over. the white house can
point saying we offered to do more border security, you have to play ball too at this point. >> there is a suggest of national guard troop could be sent to the border. would the white house support something like that? >> that may be a an area there is some wiggle room, because that wouldn't be changing laws, rolling things back. it has been done before. the white house is considering it. now could that be part of the bargaining and horse trading that goes on? possibly. the president needs to see how he can get republicans to give some grounds. so he is probably going to have to offer some concessions to them over the next week or two. >> libby casey great stuff. thank you. it looks like the south will get its first union at a foreign car plant after all. the united auto workers say it
will create a union local in tennessee. participation would be voluntary and not formally recognized by volkswagon until the majority agree to join. and it will establish a german style works council without a vote. coming up, the marijuana app. yes, there's an app for pot smokers, and we will show it to you. but first california dreams, the state is starting a first of its kind program to help middle age families send their kids to college. that story is next. ♪ >> on tech know, imagine getting the chance to view the world. >> the brain is re-learning how it sees again >> after decades in the dark, >> i couldn't get around on my own >> a miraculous bionic eye... >> i'm seeing flashes >> great
it's no secret why. the average cost of public college is $23,000 a year, and private universities average $45,000 a year. wealthy families can afford the sky-high cost, while many low-income families qualify for aid, but that leaves the middle class once again stuck in the middle. we have been focused on issues for the middle class as part of our coverage, rebuilding the american dream. but starting this fall, for the first time a scholarship designed specifically for the middle class is making its debut. patricia sabga reports. >> reporter: kat lehmann is an engineering neighbor at uc davis. because of her families limited finances she has to leave and go to a community college.
her father earned $140,000 last year, too much to qualify for need-based grants. but with two teenage brothers still heading to college, money is tight. >> my dad feels pressure just looking at the bill thinking how are we going to pay for this? >> reporter: poly-cy major is also feeling the pressure. >> it's extremely stressful. we were coming out after a recession and my mom hadn't been years. >> reporter: annual tuition at berkeley is close to $14,000. added expenses bring the total up. a major financial strain. >> the law that governor brown will sign today are significant californians. >> reporter: it's the first financial aid grant in the
country created for familiar list making up to $150,000 annually. the man behind the legislation is john perez. >> california like the rest of the country has had a real crisis of college affordability. >> reporter: over the last ten years, public university tuition rates have increased over 190%. diana is responsible for getting the word out about the new bergen. >> it's a game changer in the sense that middle class students haven't had a state finance program to help them meet the cost of their education. >> reporter: here is how the scholarship works. california residents attending a state university or university of california with ament family income up to $150,000 annually, fill out the application for federal student aide, called the fafsa. they will likely receive the scholarship after other factors
are considered. >> the grant will grow depending upon the student's income, and the cost of the institution that they are attending. >> the specific amounts will vary due to several factors including how many students apply. estimates range from $90 to $1,450 per student with grant money rising over the next three years, capping at $305 million thereafter, it's expected that the scholarship could eventually cover up to 40% of an eligible student's tuition. >> this is about the tens and hundreds of thousands of middle class families -- >> >> reporter: but with 156,000 families eligible, skeptics question how much of a difference it can really make. others say the money would be better spent on lower-income students, calling the targeting
of the middle class, a quote, political ploy. >> we had a system that was relatively effective at creating financial aid for the neediest students. we looked at what portion of the population was getting squeezed options. >> kat lehmann returning to us davis this year, hopes the scholarship will reduce some of the financial pain. but they say even a drop in the bucket is one. >> it's better than nothing, which is what i currently have. john perez says he has heard from other state leaders about the new scholarship, and in his words it's clear it's an example that others way may do as well. the long-term effects of student debt continue to playing the country. according to a recent study,
student loans are severely limiting young american's buying power. 63% said the debt affected their ability to make larger purchases such as a car, and 75% said debt has affected their decision to buy a home. joining us now from newton, massachusetts, to explain the finer details is president and ceo of american student assistance, an organization that helps college students and their families manage higher-education debt. paul a lot of us who took out loans had to make some changes. different? >> well, i mean, the real -- the real change has been to some degree, not necessarily in the level of a debt for college graduates? this so if you look at the average most people think of those very high numbers you hear.
the average is a lower number. it's really the general economy right now that goes around that. college graduates the unemployment rate is higher. the quality of jobs they are getting and the salaries are lower. we all know that income has been fairly stagnant for a long time. so as the debt has grown at some degree, the -- the ability to pay for it, actually has eroded just because incomes have gone down. one of the things we need to look at with the student debt is we tend to focus on it's a student debt, and not realize it's an economic issue for all of us. household formation, the study showed they were delaying getting married and having children, and those delays actually have an economic ripple effect for all of us. they don't buy new homes and so on. so we really have to start thinking of this more that we are supplying the financing for higher education to help people
achieve part of the american dream, and if that very debt is holding them back from that, we're not getting the impact we wanted. >> is part of the problem, the students are making the wrong decisions in terms of where they go to college and what it really means to take on certain levels of debt? > well, you can look at this problem, and look at simple -- some solutions to it. like college costs. a student can choose a different college that may or may not be the top choice from their point of view, but all of those don't necessarily lead to less debt, and it's very important to keep that in mind. that you can choose a less expensive college, but just like the california scholarship program we talked about did, what that is going to do is help those students avoid debt if they are middle income students, the difference will be debt versus scholarship. if you go to a cheaper school,
that middle class concept will drop in income range. so you are just going to get more debt. so you need to focus on the fact that we do finance education with debt in this country. so it behooves us to really help the students manage that debt so they have the knowledge to be successful, finance the education, and the opportunities after they leave college. and that's really the focus, to give them the information they need to successfully finance the education and manage the debt afterwards, because to a alarm nl. >> well said. paul, president and ceo of american student assistance. thanks for being on the problem. >> thank you. if you are looking for a job right now, i have one question for you: can you drive a big truck? we'll tell you about the shortage in america's trucking industry.
and if they don't find enough drivers fast, it could cost all of us more money. up next, even the tech industry is taking advantage of legalized marijuana. want to know how good the weed is before you buy it? we'll show you the app for that. stay with us. ♪ >> al jazeera america presents >> yeah, i'm different. i wanna do what god asks of me... 15 stories, 1 incredible journey >> edge of eighteen coming september only on al jazeera america
>> aljazeera america presents >> the killing of journalist is a question directed to society >> they are impartial... >> if you wanted to be a good journalist in iraq, you have to risk your life... >> they observe. and report... >> kidnapping is a very real problem... >> journalists on the front lines... >> sometimes that means risking death >> getting the story, no matter what it takes >> that's what the forth estate is all about... that's why i'm risking my life... >> killing the messenger on al jazeera america ♪ a brand new industry was born this week, the recreational marijuana industry in washington state. we have heard a whole lot of clever terms. it's tempting to snicker and do your best cheech and chong
impression, but the marijuana business is a serious money-making opportunity. and some serious entrepreneurs are getting in the game. >> reporter: we're outside a store called cannabis city with a lot of very happy people. it's the first operating recreational marijuana store. and sales are brisk. let's talk about the business of marijuana, though, the broader business with a man from leafly, cofounder of something called leafly. tell us what that is? >> it's the world's largest cannabis information resource and community, and it's to help people make informed decisions about the different types and very advertise of cannabis. >> you are a website and have a mobile app. provide? >> the mobile app is like the website, they have about the same coverage. all of our recrews are crowd
sourced, so people come and generate those reviews. we give people an idea of what to expect from the different very advertise and strains. >> how do you make money? >> we have a recreational model and store model as well here and in colorado. >> it's a advertising model? this >> that's correct. much like google listings. we do something similar for the dispensaries and the recreational shops. >> how do you quantify how many people are paying attention? this >> we have analytics. >> what are they showing? >> about 3 million a month between the app and the website. >> are you going to mix the data in and have that as a revenue stream as well? >> we are. we are able to see popular strains in different regions. so we can see what everybody is searching for in seattle and tell that to the recreational
shops and dispensaries and look at their menus to see if they have any gaps. so maybe they are growing the wrong product, and we're able to tell them that. >> fascinating. cy scott with leafly. just another offshoot in the business of marijuana in the state of washington. finally, if you are still skeptical about the seriousness of the marijuana business, look no further than colorado. there have been legal sales in that state since january, and today colorado regulators issued a detailed market study intended to help investors, consumers, and businesses. it's mated the total market demand in colorado is about 130 metric tons a year. two-thirds of the customers are men. the average market rate is about $220 per ounce. out of state visitors account for 44% of recreational retail sales in denver, and 90% in the
mountains and other vacation spots. heavy users are driving the market. and the study concludes that total marijuana demand is much larger than previously estimated. with sales now projected to reach $500 million. it's easy to make fun of marijuana. dude, we have the munchies! but for all of the jokes, the legal marijuana business is now like any other business. it requires transparency, accountability, reliable data, and consumer trust. all of that is on display in colorado, and like other industries that are trying to thrive, the primary goal is to make money. market studies like the one we saw today are crucial. remember, this is business. that's our show for today. i'm david shuster on behalf of ali velshi, and the entire team at "real money." thanks for watching. ♪
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